Transparency Regulation and Stock Price Informativeness: Evidence from the European Union's Transparency Directive

dc.contributor.author Watanabe, Olena
dc.contributor.author Imhof, Michael
dc.contributor.author Watanabe, Olena
dc.contributor.author Tartaroglu, Semih
dc.contributor.department Accounting
dc.date 2020-01-16T20:26:22.000
dc.date.accessioned 2020-06-29T22:44:35Z
dc.date.available 2020-06-29T22:44:35Z
dc.date.copyright Tue Jan 01 00:00:00 UTC 2019
dc.date.issued 2019-07-01
dc.description.abstract <p>We examine changes in stock price informativeness following the European Union's Transparency Directive (TPD). The TPD, implemented by country between 2007 and 2009, enhanced corporate transparency through mandating regular firm financial disclosures and facilitating the dissemination of financial reports. Using stock return synchronicity as a proxy for stock price informativeness, we find that price informativeness improved following implementation of the TPD. This improvement was more pronounced in countries with strong regulatory environments than those with weak regulatory environments. We additionally examine a later amendment to the TPD that eliminated the requirement of quarterly financial disclosures and document an increase in stock return synchronicity following the amendment. Our findings support prior research suggesting that transparency regulations improve financial information.</p>
dc.description.comments <p>This accepted article is published as Olena V. Watanabe, Michael J Imhof, and Semih Tartaroglu (<em>2019</em>) Transparency Regulation and Stock Price Informativeness: Evidence from the European Union's Transparency Directive. <em>Journal of International Accounting Research</em>: Summer, Vol. 18, No. 2, pp. 89-113. Doi: <a target="_blank">10.2308/jiar-52383</a>. Posted with permission</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/acct_pubs/14/
dc.identifier.articleid 1015
dc.identifier.contextkey 16253012
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath acct_pubs/14
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/1856
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/acct_pubs/14/2019_WatanabeO_Manu___Transparency_Regulation_and_Stock_Price_Informativeness.pdf|||Fri Jan 14 20:11:18 UTC 2022
dc.source.uri 10.2308/jiar-52383
dc.subject.disciplines Accounting
dc.subject.disciplines Business Analytics
dc.subject.disciplines Business Law, Public Responsibility, and Ethics
dc.subject.disciplines Corporate Finance
dc.subject.disciplines Finance and Financial Management
dc.subject.disciplines Strategic Management Policy
dc.subject.keywords stock return synchronicity
dc.subject.keywords stock price informativeness
dc.subject.keywords transparency regulations
dc.title Transparency Regulation and Stock Price Informativeness: Evidence from the European Union's Transparency Directive
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication 7e93ed3b-637b-4799-bd5d-e3bb47e21914
relation.isOrgUnitOfPublication a22c7344-d5b6-42c6-8b0d-c260ed008e15
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